Is Custodia a ‘Sacrificial Lamb’ to the Fed’s War on Crypto Banking?

The Breakdown

Blockworks

Investing, Business

4.8 • 786 Ratings

🗓️ 23 February 2023

⏱️ 17 minutes

🔗️ Recording | iTunes | RSS

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Summary

In a recent tweet, Kraken co-founder Jesse Powell suggested U.S. regulators like it when bad actors beat good actors because it takes down the crypto industry and the bad actors can be jailed later. In this episode, NLW explores the issue in the context of Custodia Bank's battle to join the Federal Reserve system, and its argument that it is being unlawfully used as a “sacrificial lamb” in the wake of the FTX failure. Join the discussion at discord.gg/VrKRrfKCz8. Enjoying this content? SUBSCRIBE to the Podcast Apple: https://podcasts.apple.com/podcast/id1438693620?at=1000lSDb Spotify: https://open.spotify.com/show/538vuul1PuorUDwgkC8JWF?si=ddSvD-HST2e_E7wgxcjtfQ Google: https://podcasts.google.com/feed/aHR0cHM6Ly9ubHdjcnlwdG8ubGlic3luLmNvbS9yc3M= Join the discussion: https://discord.gg/VrKRrfKCz8 Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW “The Breakdown” is written, produced and narrated by Nathaniel Whittemore aka NLW, with editing by Michele Musso and research by Scott Hill. Jared Schwartz is our executive producer and our theme music is “Countdown” by Neon Beach. Music behind our sponsor today is “Foothill Blvd” by Sam Barsh. Image credit: Godong/Getty Images, modified by CoinDesk. Join the most important conversation in crypto and Web3 at Consensus 2023, happening April 26-28 in Austin, Texas. Come and immerse yourself in all that Web3, crypto, blockchain and the metaverse have to offer. Use code BREAKDOWN to get 15% off your pass. Visit consensus.coindesk.com.

Transcript

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0:00.0	Welcome back to The Breakdown with me, NLW.
0:08.3	It's a daily podcast on Macro, Bitcoin, and the Big Picture Power Shifts remaking our world.
0:14.2	The Breakdown is produced and distributed by CoinDes.
0:17.7	What's going on, guys? It is Wednesday, February 22nd, and today we're talking about why
0:25.7	regulators don't go after bad actors, but instead focus on the good guys. A quick note,
0:32.9	before we dive in, there are two ways to listen to thedown podcast. You can hear us on the Coin Desk
0:38.0	Podcast Network feed, which comes out every afternoon and features other great Coin Desk shows
0:41.6	alongside the breakdown, or you can listen on the breakdown only feed, which comes out a few
0:46.2	hours later in the evening. Wherever you're listening, I would so appreciate it if you
0:49.6	would take the time to leave a rating or a review. It makes a huge difference, and I truly
0:53.4	appreciate each
0:54.2	and every one.
0:55.7	All right.
0:56.4	So yesterday, we closed the show on a fiery statement from Cracken's Jesse Powell.
1:01.8	I'm going to reread that tweet now.
1:04.3	Jesse writes, I have a theory.
1:06.7	Regulators let the bad guys get big and blow up because it serves their agenda.
1:11.8	1. Destroy capital and resources in the crypto ecosystem.
1:15.5	2. Burn people and deter adoption.
1:17.9	3. Give air cover to attack good actors.
1:21.3	The bad guys are actually on side. Good guys are the enemy.
1:25.5	If the bad guys can run long enough without blowing up, they might just
	...

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